Iron ore futures in Singapore rose 1.6% to as high as $101.10/t, marking the highest intraday level since July 2. Yuan-denominated futures also gained by as much as 1.8%.
The rally was also supported by expectations of restocking ahead of China’s upcoming holiday. Chinese steelmakers are expected to increase iron ore purchases ahead of the National Day holiday in October.
Pranay Shukla, Head of Dry Bulk Shipping and Commodities Research at S&P Global Energy, said the latest move was largely driven by investors closing out existing positions.
Meanwhile, fundamental market indicators are also supporting iron ore prices. Expectations that construction activity in China will pick up seasonally in September are boosting optimism over demand for steel and, consequently, iron ore.
As of 11:19 local time, iron ore was trading at $100.65/t in Singapore, up 1.1%.
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